Europe bioplastics firms optimistic amid growth despite crisis

02 June 2010 10:29[Source: ICIS news]

LONDON (ICIS news)--European bioplastics companies remain optimistic about the market's future after the majority of businesses in the industry posted healthy growth figures during the global economic crisis, survey results showed on Wednesday.

In a poll carried out by the European Bioplastics Association, figures showed that 47% of companies recorded growth in turnover for the full year of 2009, while another 32% managed to at least draw level; 10% of companies posted losses.

The survey also showed that the majority of bioplastics companies saw a positive trend overall for both this year and the year to come, with 80% saying they were optimistic.

Two thirds of companies also said that they would be increasing their investment in the sector this year, figures showed.

“This is a clear indication of the strength of green innovation and the companies driving it forward," said Andy Sweetman, chairman of the European Bioplastics board.

However despite good rates of growth, the industry group said that bioplastics still only represented a niche product, with a market share of less than 1%.

"What is missing are incentives from an effective stimulus programme to boost the market," said Harald Kaeb, political consultant to the association.

“Then companies would be better placed to finance their innovations and the necessary expansion in capacity. It would also give a strong signal to both large plastics users and consumers. The sector is ready to expand further,” he added.